1. Report Industry Investment Rating There is no information provided in the content about the report industry investment rating. 2. Core View of the Report In Q2 2025, the number of newly - issued bond funds increased slightly, and the fundraising scale climbed marginally, but it was still lower than the same period last year, mainly due to the shift in risk preference diverting incremental funds from the bond market. In terms of holding behavior, the total scale of public funds' holdings of coupon - bearing assets remained stable, but there were structural differentiations. In Q2, funds mainly increased their holdings of bank sub - debt and industrial bonds, especially the scale of general credit bonds with a maturity of over 7 years increased sharply, and continued to reduce their holdings of general commercial financial bonds [5]. 3. Summary According to the Table of Contents 3.1 Overview of Incremental Funds: Improved New - Issue Performance and Restored Bond Fund Scale - In Q2 2025, 77 new bond - type funds were issued, with a fundraising scale of 97.4 billion yuan, showing improvement compared to Q1 but still a significant gap compared to the same period last year (113 bond funds were issued, raising 289.7 billion yuan) [2][11]. - The shift in risk preference diverted incremental funds from the bond market. In Q2, the equity market continued the main lines of technology - growth and low - volatility dividend. The quarterly increase of general stock - type funds exceeded 3%, 2 percentage points higher than that of bond - type funds. At the end of Q2, the outstanding share of bond - type funds was 9.6 trillion shares, an increase of 0.57 trillion shares compared to Q1 but lower than the same period last year [2][16]. - On June 6, the first batch of 9 credit - bond ETFs were officially included in the general repurchase of pledged bonds. The scale of credit - bond ETFs expanded rapidly. At the end of Q2, the scale of 8 benchmark - making credit - bond ETFs was 128.2 billion yuan, about 4.4 times that at the end of Q1 [19]. 3.2 Preference from Heavy - Holding Bonds: Gaming Duration Opportunities - The total scale of public funds' holdings of coupon - bearing assets remained stable, with structural differentiations. In Q2, the heavy - holding scale of credit bonds by funds was stable at around 800 billion yuan, a decrease of 0.37% compared to Q1, while the signal of increasing holdings of interest - rate bonds was obvious, with the holding scale increasing by 4.35% quarter - on - quarter [22]. - Funds actively pursued long - duration assets. The scale of general credit bonds with a maturity of over 7 years held by funds in Q2 soared to 14 billion yuan, and the number of holding funds increased from 76 at the end of Q1 to 124 at the end of Q2 [25]. - In terms of sub - bond types, funds mainly increased their holdings of bank sub - debt and industrial bonds in Q2, and continued to reduce their holdings of general commercial financial bonds. The heavy - holding scale of Tier 2 capital bonds and perpetual bonds (Two - Tier Bonds) increased by 26.5 billion yuan to 269.1 billion yuan, becoming the bond type with the largest heavy - holding scale. There was also a slight increase in industrial bonds, while the reduction was mainly concentrated in urban investment bonds and general commercial financial bonds, with a reduction scale of over 12 billion yuan [29]. 3.2.1 Urban Investment Bonds: Narrowed Supply and Preference Conversion - The supply of urban investment bonds continued to shrink. In Q2, 1.22 trillion yuan of urban investment bonds were issued, showing an obvious reduction compared to Q1 and the same period in previous years. After hedging against maturities, the net financing gap of urban investment bonds in Q2 expanded to 226.8 billion yuan, further narrowing the institutional allocation space. The scale of funds' holdings of urban investment bonds of all implicit ratings decreased, and the proportion of holdings of urban investment bonds with AA and below ratings by funds dropped to 55.5% [32]. - The proportion of 3 - 5 - year urban investment bonds held by funds increased. In Q2, the proportion of short - term urban investment bonds with a maturity of within 1 year held by funds dropped to 33%, the proportion of 3 - 5 - year bonds climbed to 15.6%, reaching a new high since 2022, and the proportion of bonds with a maturity of over 5 years increased marginally to 1.9% [38]. - In terms of regional distribution, Zhejiang, Shandong, and Jiangsu were still the provinces with the largest scale of urban investment bond allocation by funds. The holding duration of Shanghai's urban investment bonds was significantly extended [40][45]. 3.2.2 Industrial Bonds: Long - Duration Utility Bonds are Favored - Funds' increase in holdings of industrial bonds was concentrated in the transportation and utility industries. In Q2, the scale of funds' preference for allocating utility bonds and transportation bonds increased by more than 2 billion yuan quarter - on - quarter, and these two industries were among the top three industries with the largest scale of heavy - holding industrial bonds by funds, with heavy - holding scales of 27.4 billion yuan and 13 billion yuan respectively [4][48]. - In terms of duration distribution, the proportion of industrial bonds with a maturity of within 1 year held by funds reached a new high, climbing to 29%, and the average holding duration of the transportation and coal industries showed a shortening trend. On the other hand, the proportion of industrial bonds with a maturity of over 4 years also increased significantly, which was consistent with the extension of the holding duration of utility bonds from 1.4 years in Q1 to 2.5 years [4]. 3.2.3 Financial Bonds: The Trading Main Line of Secondary Bonds of National and Joint - Stock Banks - Funds have increased their holdings of Tier 2 capital bonds for three consecutive quarters. Since Q4 2023, the trend of funds increasing their holdings of Tier 2 capital bonds has been obvious, which is related to their characteristics of easy volume acquisition and high liquidity. In the context of low interest rates, seizing trading opportunities to earn capital gains has become one of the main lines [4][55]. - However, funds' sentiment towards allocating sub - debt of small and medium - sized banks cooled down. The proportion of small and medium - sized banks' Tier 2 capital bonds and perpetual bonds in the total holding scale of Two - Tier Bonds dropped to 12.7%, and investors' concerns about the capital replenishment of small and medium - sized banks increased [59]. - Funds significantly increased their holdings of 4 - 5 - year secondary bonds, and the proportion of secondary bonds with a maturity of over 5 years held by funds reached a new high. Compared with Q1, the scale of funds' holdings of Two - Tier Bonds with a maturity of 4 - 5 years increased by 18.8 billion yuan, and the proportion of this maturity increased to 29.5%. The proportion of Tier 2 capital bonds with a maturity of over 5 years increased to 4.4%, a significant breakthrough since 2020. For bank perpetual bonds, holdings were still concentrated in the short - end within 1 year, but the preference for allocating 3 - 5 - year bank perpetual bonds also improved [4][60].

Investment Rating - The report maintains a strong confidence in the pharmaceutical sector for a reversal trend in 2025, emphasizing innovation drugs as the main investment theme [4]. Core Views - The report highlights significant BD collaborations by leading domestic pharmaceutical companies, indicating a rich pipeline of innovative drugs entering the monetization phase [1][39]. - It suggests focusing on innovative drugs addressing unmet clinical needs, particularly in chronic diseases and cancer [2][4]. - The report notes the ongoing normalization of centralized procurement in medical devices, which is expected to enhance market share for quality domestic companies [41][42]. Summary by Sections Pharmaceutical Sector - Recent collaborations include Heng Rui Medicine's partnership with GSK for 12 innovative projects, with an upfront payment of $500 million and potential milestone payments of $12 billion [1][39]. - The report indicates that the innovative drug sector is experiencing upward momentum, with the China Innovation Drug Index rising by approximately 0.52% [21]. - The report emphasizes the importance of leading pharmaceutical companies' internationalization and resource integration capabilities [2][39]. Medical Devices - The centralized procurement process is advancing, with a focus on drug-coated balloon and urological intervention medical consumables [41][42]. - The report anticipates that quality domestic enterprises will gain higher market shares due to successful bids in procurement [42]. Biopharmaceuticals - Sanofi reported a 10.1% increase in global sales for Q2 2025, driven by the sales of Dupixent, which grew by 21.1% year-on-year [47][48]. - Dupixent has been approved for COPD treatment in 13 countries, with further approvals expected [50]. Medical Services and Consumer Healthcare - The implementation of a childcare subsidy policy is expected to release pent-up demand for IVF services and enhance industry penetration [56][57]. Key Investment Targets - The report identifies key investment targets including Kelun-Botai, Renfu Pharmaceutical, Huadong Medicine, and others [5].

Tax Policy Changes - The Ministry of Finance and the State Taxation Administration announced that from August 8, 2025, interest income from newly issued government bonds, local government bonds, and financial bonds will be subject to VAT[3] - Interest income from bonds issued before this date will continue to be exempt from VAT until maturity[3] Estimated Tax Revenue - The estimated VAT revenue from interest income for the year is approximately 14.4 billion RMB[6] - Assuming 15 trillion RMB in new bond issuance from August to December 2025 at an average coupon rate of 1.75%, the taxable interest amount is estimated to be around 262.5 billion RMB, leading to a VAT revenue of about 14.4 billion RMB[6] Impact on Bond Yields - The introduction of VAT on new bonds is expected to push up the issuance yields, with a potential increase of 6-10 basis points for new 10-year bonds[13] - The tax burden will be shared between investors and issuers, limiting the actual increase in yields[13] Market Dynamics - Following the announcement, the yield on 10-year government bonds initially rose but then fell by 1 basis point, indicating strong buying interest in existing bonds[14] - The tax changes may narrow the yield gap between government bonds and credit bonds, potentially shifting some investment towards the credit bond market[14] Fiscal Policy Objectives - The tax reform aims to enhance fiscal revenue capacity and alleviate fiscal pressure, as the government debt-to-GDP ratio has risen significantly from 37.9% in 2019 to 65.3% in Q2 2023[18] - The reform is part of a broader effort to streamline the tax system and remove outdated tax exemptions, promoting a more modern tax structure[18]

Report Title - The report is titled "Public Offering Infrastructure REITs Weekly Report" [1] Industry Investment Rating - No industry investment rating is provided in the report Core Viewpoints - No clear core viewpoints are presented in the provided content Summary by Relevant Catalogs Secondary Market Price and Volume Performance - From July 28 to August 1, 2025, some REITs showed price changes of 20.51%, 14.74%, 60.01%, 39.98%, and 70.00% [26] Secondary Market Valuation Situation - The report provides detailed valuation data for various REITs, including P/FFO, P/NAV, IRR, expected values for 2025, and other indicators for different types of REITs such as warehousing and logistics, industrial parks, affordable rental housing, consumer infrastructure, highways, ecological and environmental protection, and energy [16] Market Correlation Statistics - It shows the correlation coefficients between REITs and different asset classes such as stocks, convertible bonds, pure bonds, and commodities. For example, the correlation coefficient between REITs and the Shanghai Composite Index is 0.21, and different types of REITs (property - related, franchise - related, etc.) also have different correlation coefficients with these asset classes [22] Primary Market Tracking - Lists multiple REIT projects in different stages (approved, accepted, feedback - received). For example, the Southern Runze Technology Data Center REIT has been approved, with a project valuation of 4.203 billion yuan, and the CICC Vipshop Outlets REIT has been accepted, with a project valuation of 2.972 billion yuan [25]

Group 1: Report Industry Investment Rating - Not mentioned in the provided content Group 2: Core Views of the Report - The capital rate in July continued to decline, and the capital market was relatively friendly. It is expected that the capital rate in August will likely maintain a stable and slightly loose pattern [2][6] Group 3: Summary of July Review - Most term capital rates declined in July. The operating centers of DR007 and DR014 decreased by 6bp and 8bp respectively, and those of R001, R007, and R014 decreased by 4bp, 10bp, and 12bp respectively. The deviation of DR007 from the policy rate also narrowed [2][12] - The number of days when DR007 dropped below "policy rate + 10bp" increased significantly in July, rising from 5% in previous months to 45% [2][13] - The central bank continued to support the capital market in July. The total capital injection through reverse repurchase, MLF, and outright reverse repurchase was 48.8 billion, with the net injection scale being the second - highest in the same period since 2018. The capital injection during the tax period was the highest in the same period since 2018, and a large - scale reverse repurchase was carried out after the unexpected tightening of capital rates on July 24 [2][14] - The rapid decline in the bill rediscount rate may indicate poor credit demand in July. Banks may use bill financing to increase credit scale, which reduces the consumption of excess reserves and benefits the capital market [3][19] - The yield of inter - bank certificates of deposit fluctuated. The R007 - DR007 spread reached a new low in the same period since 2019 [21] Group 4: Summary of August Outlook - The market's expectation for further loosening of the capital market in the future is not strong, but the capital rate in August may still maintain a stable and slightly loose pattern [4][6] - Whether the capital market will experience "secondary tightening" is crucial for the bond market. The current bond market adjustment is mainly driven by price increase expectations. If the capital follows and tightens, it will form an additional negative factor [4][32] - Historically, commodity price increases do not necessarily lead to synchronous increases in capital prices. There were cases in 2017, 2018, and 2021 where the building materials composite index rose while the capital rate remained flat or declined [4][33] - The current social financing and exchange rate situations are different from those in the first quarter. Social financing is likely to decline in the second half of the year, and the exchange rate pressure has significantly eased [5][39] - The PMI indicates that the current fundamentals are weaker than those in the first quarter. Since 2024, the capital rate has been more sensitive to fundamental changes. The recent decline in high - frequency fundamental signals suggests that there is no upward risk for the capital rate [5][43] - The net financing pressure of government bonds in August will increase slightly compared to July, but the overall liquidity gap will narrow. Assuming the central bank conducts equal - amount roll - overs of maturing monetary tools, the estimated excess reserve ratio in August will decline [44][47]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported Q1 FY2026 revenue of $575 million, a year-over-year increase of 38.8%, slightly below Bloomberg consensus estimates of $579 million. Non-GAAP operating profit was $25 million, exceeding expectations of $12 million, while Non-GAAP net profit attributable to shareholders was $42 million, surpassing the forecast of $31 million [2]. - The tutoring and online school segments are driving stable growth in learning service revenue, with a healthy class renewal rate of approximately 80%. However, growth is expected to gradually slow due to market saturation and a balanced supply-demand dynamic in the tutoring sector [3]. - The learning machine business is still in the investment phase, with sales growth reported at 70% year-over-year, totaling approximately 190,000 units sold. Despite a decrease in average selling price due to new product launches, the company is expanding its market penetration [3]. - The company achieved a significant improvement in profitability, with an operating profit margin of 2.5%, up 6.7 percentage points year-over-year. Gross margin was reported at 54.9%, reflecting operational efficiency and changes in business structure [4]. - The company has been aggressive in share buybacks, repurchasing $477 million worth of shares, which is about 12% of total trading volume during the period. A new buyback plan was approved for up to $600 million over the next 12 months [4]. Summary by Sections Performance Review - Q1 FY2026 revenue was $575 million, up 38.8% year-over-year, slightly below expectations. Non-GAAP operating profit was $25 million, and Non-GAAP net profit was $42 million, both exceeding forecasts [2]. Operational Analysis - The tutoring business is experiencing stable growth, with a class renewal rate of around 80%. The online school segment saw over 100% year-over-year growth in monthly active users [3]. - The learning machine segment reported a 70% increase in sales, with total sales revenue of approximately $8 million, despite a decrease in average selling price [3]. Profitability and Buyback - The company reported an operating profit margin of 2.5%, with a gross margin of 54.9%. The company has been active in share buybacks, repurchasing $477 million worth of shares [4]. Earnings Forecast and Valuation - The forecast for Non-GAAP net profit for FY2026 to FY2028 is $214 million, $330 million, and $462 million, respectively, with adjusted PE ratios of 31, 20, and 15 times [5].

Economic Performance - The U.S. GDP growth rate for Q2 was reported at 3.0%, following a contraction of 0.5% in the previous quarter, exceeding the expected 2.6%[7] - However, the overall economic growth rate is projected to decline to 1.2% in the first half of 2025, significantly lower than the second half of 2024[7] - The domestic private final purchases (PDFP) growth has weakened, with Q1 revised down to 1.9% and Q2 at only 1.2%, indicating a decline in internal economic momentum[13] Federal Reserve Policy - Jerome Powell is characterized as a hawkish figure, prioritizing inflation risks over full employment, advocating for tighter monetary policy to suppress inflation[3] - The recent FOMC meeting saw two dissenting votes, marking a notable increase in opposition during Powell's tenure, reflecting the end of a "great moderation" era[5] - The removal of the phrase "uncertainty further reduced" from the Fed's statements suggests ongoing concerns about policy uncertainty, particularly related to Trump's administration[6] Risks and Challenges - Increased uncertainty in the Middle East could significantly raise oil prices, leading to higher inflation in the U.S. and complicating the Fed's rate-cutting decisions[4] - Trump's domestic policies may face greater resistance, potentially leading to increased fiscal stimulus and unexpected easing from the Fed[4] - Heightened volatility in U.S. financial markets could accelerate capital outflows and a decline in the dollar, risking a deeper recession[4]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% in the next 6-12 months [5]. Core Insights - The company reported Q2 revenue of 12.359 billion RMB, a year-over-year increase of 47.1%, with self-operated store revenue up 45.6% and franchise revenue up 55.0% [2]. - GAAP net profit for Q2 was 1.251 billion RMB, a year-over-year increase of 43.6%, with a profit margin of 10.1% [2]. - Non-GAAP net profit reached 1.399 billion RMB, up 44.0% year-over-year, with a profit margin of 11.3% [2]. - The company experienced strong operational metrics, benefiting from delivery platform subsidies, with same-store sales up 13.4% and monthly active users reaching 91.7 million, a year-over-year increase of 31.6% [3]. - The company accelerated its store openings, adding 2,109 new stores in Q2, bringing the total to 26,206 stores [3]. - The overall gross margin improved by 2.86 percentage points year-over-year, although fulfillment costs increased, impacting operating profit margin [4]. - The actual tax rate for Q2 was 29.76%, with a GAAP operating profit margin of 13.8%, reflecting healthy business performance [4]. - The forecast for Non-GAAP net profit for FY2025, FY2026, and FY2027 has been adjusted to 4.401 billion RMB, 5.516 billion RMB, and 6.999 billion RMB respectively, with corresponding adjusted PE ratios of 20, 16, and 13 [5].

Investment Rating - The report downgrades the investment rating to "Accumulate" with an expected price increase of 5% to 15% over the next 6-12 months [5]. Core Views - The company reported Q4 FY2025 revenue of $1.243 billion, a year-over-year increase of 9.4%, with the education segment revenue reaching $1.089 billion, up 18.7%, exceeding guidance [2]. - The company announced a three-year shareholder return plan, committing to return at least 50% of the previous fiscal year's net profit to shareholders through dividends and buybacks, estimating a total return of no less than $186 million for FY2025 [4]. - The education business is expected to experience a slowdown in revenue growth due to economic conditions and increased competition, with Q1 FY2026 international exam preparation and study abroad consulting revenues projected to decline by 5% year-over-year [3]. Summary by Sections Performance Review - FY2025 Q4 revenue was $1.243 billion, with a 9.4% year-over-year increase. The education business revenue was $1.089 billion, up 18.7%, surpassing guidance. Non-GAAP operating profit margin improved to 6.5%, a 4.1 percentage point increase year-over-year [2]. Operational Analysis - The education business revenue growth is expected to slow in FY2026 due to economic and international factors. Q1 FY2026 international business is projected to decline by 5%, while K9 business is expected to grow by 15-16% [3]. - Profit pressure is anticipated from the slowdown in education revenue, but cost reduction and efficiency improvements are expected to positively impact profit margins by 1-1.5 percentage points [3]. Profit Forecast, Valuation, and Rating - The company is projected to achieve total revenues of $5.276 billion, $5.719 billion, and $6.228 billion for FY2026, FY2027, and FY2028, respectively, with a three-year compound growth rate of 8% [5]. - Non-GAAP net profit estimates are $560 million, $598 million, and $641 million for FY2026, FY2027, and FY2028, respectively, with adjusted PE ratios of 14, 13, and 12 times [5].

Economic Policy and Planning - The Politburo meeting announced the Fourth Plenary Session of the 19th Central Committee will be held in October, focusing on the "14th Five-Year Plan" and its alignment with the 2035 modernization goals[2] - The "14th Five-Year Plan" aims to set economic targets, particularly whether GDP quantitative goals will be restored, and to outline major engineering projects with significant investment scales[2][5] - The meeting emphasized a more positive internal economic outlook, shifting from "using policy tools effectively" to "implementing and optimizing" policies[5][7] Risk Management and Market Adjustments - The meeting highlighted the need to prevent the emergence of hidden debts and to effectively clear local financing platforms, aligning with the central government's focus on debt management as a core aspect of performance evaluation[5][7] - Adjustments were made to the "anti-involution" policy, clarifying that it does not equate to price hikes but rather focuses on orderly capacity governance in key industries like photovoltaics and new energy vehicles[3][8] - There is a risk of inadequate policy implementation leading to "运动式去产能" (campaign-style capacity reduction), which could create further issues in the economy[4][10] Future Economic Outlook - The economic growth targets for 2023-2025 are set at around 5%, reflecting a cautious approach amid global uncertainties[5][6] - The meeting did not mention new policy financial tools or direct risk prevention measures related to real estate, indicating a shift in focus towards high-quality urban renewal and new consumption growth points[5][6][7] - The potential for economic weakness in the third and fourth quarters is acknowledged, particularly as export demand may decline[10]